RPM International Inc (RPM)
Return on total capital
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 904,761 | 767,357 | 693,742 | 752,981 | 508,070 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,510,880 | 2,140,840 | 1,982,430 | 1,741,060 | 1,262,440 |
| Return on total capital | 36.03% | 35.84% | 34.99% | 43.25% | 40.25% |
May 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $904,761K ÷ ($—K + $2,510,880K)
= 36.03%
RPM International Inc's return on total capital has shown a consistent and strong performance over the past five years. The company's return on total capital has ranged from 34.99% to 43.25%, indicating efficient utilization of both equity and debt to generate profits. The slight fluctuations in the return on total capital do not raise any concerns, as overall, the company has maintained a high level of return on total capital, demonstrating its ability to generate significant returns relative to the capital invested in the business. This consistent performance suggests that RPM International Inc has been effectively managing its capital structure and assets to maximize profitability for its shareholders.
Peer comparison
May 31, 2024